FxWirePro: EUR/JPY extends range trade for the 2nd straight session, focus on ZEW Economic Sentiment index for further direction

EUR/JPY chart - Trading View 

Fundamental News:

The single currency is struggling to gain upside traction despite narrowing Greek-German yield spread.

Greek government bond yields fell to near record low levels yesterday in response to comments by a senior official that a deal to repay International Monetary Fund loan is imminent. 

Focus now on ZEW Economic sentiment index for Germany and Eurozone for further impetus.

Technical Analysis:

EUR/JPY is extending range trade for the 2nd straight session.

The pair holds above 110-EMA and daily cloud, break below will see weakness.

Stochastics RSI is at highly overbought levels, some pullback likely.

Price action is ranging sideways. Further bullish momentum can see gains till 200-DMA.

Break below 110-EMA will see weakness (test of lower BB possible).

Major Support/Resistance:

Support levels - 126.21 (110-EMA), 126 (5-DMA), 125.59 (55-EMA)

Resistance levels - 127, 127.65 (200-DMA and 61.8% Fib), 128 

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.